Chapter 21
Assisting Larger Businesses with Fraud Prevention
In This Chapter
Probing the potential risk of fraud
Setting up effective internal controls
Reacting after a business gets ripped off
In Chapter 20, we discuss ways in which forensic accountants can help small businesses prevent fraud. Here, the topic is the same but the object of our attention is medium and large businesses. (We refer to them collectively as “larger businesses” in this chapter.) Although this chapter is focused on large businesses, these principles may also apply to small businesses, other entities, or businesses that are not publicly traded companies.
Before we go any further, let’s define our terms. What exactly is a medium or large business? In Chapter 20, we explain that a small business generally brings in less than $250 million in revenue each year. We consider a medium-size business to be one that brings in between $250 million and $750 million in revenue each year. A large business, therefore, is one that has annual revenues in excess of $750 million.
Because larger businesses are faced with many of the fraud risks encountered by small businesses, many of the pearls of wisdom we offer for small ...
